Do you think business analytics is only for large corporations? Not at all! This kind of analysis is equally valuable for small businesses. It reveals where your business can grow and where processes need improvement.
Our focus is on small businesses because they often face limited resources and need efficient solutions for growth. Small companies may not always be able to hire in-house analysts or use expensive software solutions, making business analytics especially relevant and valuable for them. Let’s break down how this works.
What is business analytics?
Specialists who provide business intelligence services help companies understand and use their data to improve operations. Every business owner has a lot of information about sales, customers, and expenses, but not many know what to do with it. Business analysts interpret this data to suggest improvements, identify cost-saving opportunities, and increase profits. In simpler terms, it’s like having a smart assistant that helps make data-driven decisions.
Who needs business analytics?
Business analytics is essential for anyone looking to enhance their business, whether they are small or large companies. It’s for those who want to understand their sales, customers, and expenses better. Experts at Avenga, a global IT engineering and consulting platform, help clients use real-time data to make informed decisions.
“This allows for data visualization and updates, applying prescriptive and predictive analytics, and providing both historical and current information,” say experts at Avenga.
Professionals have also detailed how business analytics specifically helps small businesses grow.
Optimizing business processes
In business, every resource counts. Specialists providing business intelligence services identify all the “bottlenecks” in a company. Here are a few examples:
Reducing task time
Do you have a process that takes several hours? Analytics can help identify which steps can be optimized or automated. For example, preparing a weekly report in your coffee shop takes 2-3 hours. Business analytics can show which steps can be optimized or automated. Instead of manually counting sales and creating reports, you can implement an automatic data collection system from the cash register. This can reduce task time by 50%, allowing baristas to focus on customer service and managers to improve the coffee shop’s operations.
Cutting costs
Suppose you spend a lot on maintaining your coffee machine, but it still frequently breaks down. Analytics can identify the best times for preventive maintenance, redirecting the budget to more effective methods and saving up to 30% on operational expenses.
Enhancing marketing strategies
Marketing is an art. But how do you know what really works? Business analytics can help with that.
With analytics, it’s easy to understand which channels yield the highest returns. For instance, if your social media ads bring in more customers than billboard ads, you can reduce spending on billboards and focus on online platforms.
Don’t forget about key performance indicators (KPIs). Analytics helps track metrics like traffic, conversions, and click-through rates in real-time.
Forecasting and risk management
Business analytics also aids in forecasting trends. Experts can help you understand market directions. For example, if you run a small grocery store, you can use data to analyze shopping trends, predicting a rise in demand for eco-friendly products. This allows you to prepare in advance, increase supply, and become a market leader.
Analytics not only helps predict trends but also avoid problems. If sales in your grocery store drop during a certain time of the year, analytics can help understand the reasons and take proactive measures, such as launching promotions or increasing advertising budgets during that period.
Improving customer service
Customers love being understood. Analytics helps create personalized offers that genuinely interest your customers. For instance, if data shows a customer frequently buys baby food, you can offer them a discount on products from a specific brand. This not only boosts sales but also improves customer perception of your brand.
When customers are happy, they return again and again. Analytics helps understand what customers like or dislike. FOr example, if feedback indicates your store is too hot in the summer or has long checkout lines, you can address these issues, leading to happier customers who are more likely to leave positive reviews.
Managing Personnel
Analytics acts like your personal HR assistant. It helps understand when and how many employees you need to hire. For example, if sales spike in your store during the summer due to high demand for fresh fruits and vegetables, you can prepare by hiring additional staff. This prevents staff shortages and maintains high service levels.
Additionally, BI helps forecast how many employees you’ll need in six months, a year, or five years. This enables budget planning and avoids surprises.
Analytics also allows you to track employee performance—identifying who performs best, who needs skill improvement, and who might need to be let go. For instance, if analytics shows low productivity from a particular salesperson, you can adjust their tasks to enhance efficiency.
Business analytics helps small businesses become more efficient, compete with larger players, and reach new heights. There is no doubt that intelligent decision-making will help also your business grow and thrive.
